<div class="phx-topic abstract-wrapper">The major Chinese ports of Shanghai and Ningbo are currently experiencing delays of two to three days due to the lingering impacts of the storm that hit the region late last week.</div>

The major Chinese ports of Shanghai and Ningbo are currently experiencing delays of two to three days due to the lingering impacts of the storm that hit the region late last week.

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<div>Container shipping services in the East China Sea are facing ongoing disruption amid port congestion and vessel delays from the impact of Typhoon Kong-rey, which hit Taiwan late last week before moving northward to affect eastern China and Japan. Kaohsiung, Taiwan’s busiest container port, is experiencing berthing delays of up to two days after the port was closed as the storm, Taiwan’s fiercest typhoon in almost 30 years, traversed the southern part of the island on Oct. 31 and Nov. 1. Ships docking at Taiwan’s container ports, including Taipei and Keelung, are still facing waits of between two and three...

Container shipping services in the East China Sea are facing ongoing disruption amid port congestion and vessel delays from the impact of Typhoon Kong-rey, which hit Taiwan late last week before moving northward to affect eastern China and Japan. Kaohsiung, Taiwan’s busiest container port, is experiencing berthing delays of up to two days after the port was closed as the storm, Taiwan’s fiercest typhoon in almost 30 years, traversed the southern part of the island on Oct. 31 and Nov. 1. Ships docking at Taiwan’s container ports, including Taipei and Keelung, are still facing waits of between two and three days, shipping executives said. The major Chinese ports of Shanghai and Ningbo are currently experiencing delays of a similar length due to the lingering impact of the typhoon. Terminals in both cities suspended operations Friday afternoon ahead of the storm’s arrival, with cargo handling gradually resuming later in the weekend, port officials said. Kuehne + Nagel said congestion at Shanghai is gradually easing, while bad weather, including dense fog, is also affecting operations at Qingdao, the forwarder said. Carrier Ocean Network Express (ONE) said Kong-rey is delaying vessels deployed on various trades, including its Japan-Thailand-Vietnam and Taiwan-Philippines shuttle services. ONE’s vessel schedules show the storm added four days to the normal eight-day transit between Yokohama and Laem Chabang in Thailand for the 2,858-TEU ACX Crystal operating its JTV service. There was an additional one-day delay to Cai Map port near Ho Chi Minh City in Vietnam due to port congestion. The 1,096-TEU Contship Era, operating ONE’s TWP2 shuttle service, was delayed five days in Kaohsiung and only departed the port Tuesday for Cebu in the Philippines. ONE said Tuesday that ships operating Asia-Europe services are still affected by delays caused by typhoons Bebinca and Pulasan, which hit Asia in September. The two storms are partly responsible for lengthening transit times by about 10 to 13 days. Contact Keith Wallis at keithwallis@hotmail.com.

Container Shipping News

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Maritime

East China Sea container traffic facing delays, port congestion after typhoon

<div class="phx-topic abstract-wrapper">Artificial intelligence will accelerate the new reality that ocean carriers make no secret of the fact they are profit-making entities, writes Peter Tirschwell. </div>

Artificial intelligence will accelerate the new reality that ocean carriers make no secret of the fact they are profit-making entities, writes Peter Tirschwell.

<div class="phx-topic">Anyone even remotely plugged into the news would understand at some level that artificial intelligence (AI) is poised to unleash massive economic change. The idea that container shipping and supply chains will somehow be unaffected is fanciful. Evidence of the huge potential impact is everywhere: <div class="wrapper-narrow float-right-element"><img src="/images/phoenix/6076149_0.1.jpg"></img></div>The CEO of Amazon said in June the company will need fewer employees in the future – certainly without any curtailment of revenue growth – while the CEO of Ford a month later said AI will replace “literally half of all white-collar workers.” The stock price of the tech research firm Gartner collapsed 30% on Aug. 5, its worst single-day loss in 26 years, after earnings weakness pointed to the vulnerability of its business model to AI. The share price of the advertising firm WPP was down nearly 50% this year as of Sept. 4 on fears creative services will be displaced by AI. How many coders will be needed if the work can be done by AI at a fraction of the time and cost? The impact in container shipping could be similarly profound, but not in obvious ways. Of course, there will be impact from human processes being automated with AI. That is a given. Carriers and forwarders – and this is nothing new – know they can’t miss any opportunity for cost savings, not just to eek out profits, but to avoid going to market with a higher cost structure than competitors. AI will be just the latest technology leveraged in pursuit of cost competitiveness. No, the impact could be much greater. <h3>Ocean carriers increasingly resembling railroads </h3>The late E. Hunter Harrison, CEO of Class I railroads Canadian National, Canadian Pacific and CSX, was famously beloved by investors and loathed by customers. Running his railroads to maximize profit meant customers, specifically those captive to railroads, were inconvenienced and deprioritized in ways large and small. Precision schedule railroading, (PSR) a concept he created that has been widely implemented, meant trains left on time with no exceptions, even for preferred customers. Ocean carriers increasingly resemble railroads. Beneficial cargo owners (BCOs) are beholden to container shipping; only for a few and only in certain situations is air cargo a viable alternative. And with waves of consolidation over decades, top carriers control more of the market than they ever did. <a href="https://www.bing.com/search?qs=HS&amp;pq=alpha&amp;sk=CSYN1UAS6LS12LC1FT1HS1&amp;sc=25-5&amp;q=alphaliner+top+100&amp;cvid=bd5ac56424d944a8a3efbd6a49051f7a&amp;gs_lcrp=EgRlZGdlKgYIARAAGEAyCQgAEEUYOxj5BzIGCAEQABhAMgYIAhAuGEAyBggDEAAYQDIGCAQQABhAMgYIBRAAGEAyBggGEAAYQDIGCAcQABhAMgYICBAAGEAyCAgJEOkHGPIHMggIChDpBxj8VdIBCDIwNDRqMGoxqAIIsAIB&amp;FORM=ANAB01&amp;PC=U531">The top 10 now control</a> over 84% of total tonnage, according to Alphaliner. Though carriers freely compete, the psychology of carriers was changed by COVID-19. This is relevant in light of AI. Consider the evolution: In an earlier day, with more carriers and an ethos of serving customers, carriers used to run their networks for schedule reliability. This was standard during many decades of the conference system, when conference lines spent lavishly on fuel to ensure on-time arrivals irrespective of whether freight rate levels would yield adequate returns. No longer. Devotion to reliability was punctured during the 2008-2009 financial crisis when carriers began slow steaming at scale to balance supply and demand, and then further eroded in the years prior to Covid as blank sailings became standard practice within alliances. COVID and the disruptions that followed sealed the deal. Carriers realized that profits result not from ships being on time with ships and cargo circulating fluidly. Rather, profits result from the system being disrupted and capacity removed due to port congestion, idled ships and elongated transits, like those around southern Africa to avoid the Red Sea. On that basis, carriers earned unimaginable profits of over $400 billion from 2020-2023, according to analyst John McCown. That was more profit than the industry earned during the entire period between the first container ship sailing in 1956 and 2020, according to Sea-Intelligence. <h3>AI to the rescue? </h3>If JP Morgan is right in <a href="https://www.joc.com/article/rocky-stretch-ahead-for-shippers-carriers-in-2026-and-beyond-6069904">recently forecasting</a> “deep losses” due to “material oversupply,” carriers are staring at a bleak outlook over the next few years. Could this be where AI comes to the rescue? Its timing couldn’t be better. The following scenario is far from implausible. A carrier’s complete data repository is fed into a trained AI model on a continuous basis. All vessels, all locations, all speeds, all fuel consumption, all containers and their locations, all customers, all contracts, all spot rates, all port times and all financials. A simple request is made: Run the network to maximize profit. Do as Hunter Harrison would have done. Determine at what speeds ships operate, the ports they do and don’t call, and which trade lanes they slot in and out of. Also determine which customers get containers and when and which ones have to wait, and what rates get extended to whom, when and on what terms. The system learns and improves. Google says its <a href="https://research.google/blog/heuristics-on-the-high-seas-mathematical-optimization-for-cargo-ships/#:~:text=Google%27s%20Operations%20Research%20team%20is%20proud%20to%20announce,while%20being%20faster%20than%20any%20known%20previous%20attempts.">Shipping Network Design API</a> announced last year is able to double the profit of a container line, deliver 13% more containers and do so with 15% fewer vessels. In April, CMA CGM announced a Euro 100 million investment in a partnership with Mistral AI that CMA CGM Chairman Rodolphe Saade called a “transformation of CMA CGM through artificial intelligence.” In a famously relationship-based industry, subjecting key decisions to AI direction is obviously radical. Carriers may hesitate to subjugate customer relationships to AI decision making if competitors are keeping the phone lines and bar tabs open. They may defer to their conservative instincts, just as they do regarding other proposed radical solutions to under-performance, such as trading freight rate futures. But times have changed. Carriers are no longer unclear that they are profit-making entities entitled to act in their own interests. Transportation profits come from control over the network, limited competition, capacity management and captive customers. That is what is developing in containers, and AI, at the end of the day, will only accelerate it. Contact Peter Tirschwell at <a href="mailto:peter.tirschwell@spglobal.com">peter.tirschwell@spglobal.com.</a></div>

Anyone even remotely plugged into the news would understand at some level that artificial intelligence (AI) is poised to unleash massive economic change. The idea that container shipping and supply chains will somehow be unaffected is fanciful. Evidence of the huge potential impact is everywhere: The CEO of Amazon said in June the company will need fewer employees in the future – certainly without any curtailment of revenue growth – while the CEO of Ford a month later said AI will replace “literally half of all white-collar workers.” The stock price of the tech research firm Gartner collapsed 30% on Aug. 5, its worst single-day loss in 26 years, after earnings weakness pointed to the vulnerability of its business model to AI. The share price of the advertising firm WPP was down nearly 50% this year as of Sept. 4 on fears creative services will be displaced by AI. How many coders will be needed if the work can be done by AI at a fraction of the time and cost? The impact in container shipping could be similarly profound, but not in obvious ways. Of course, there will be impact from human processes being automated with AI. That is a given. Carriers and forwarders – and this is nothing new – know they can’t miss any opportunity for cost savings, not just to eek out profits, but to avoid going to market with a higher cost structure than competitors. AI will be just the latest technology leveraged in pursuit of cost competitiveness. No, the impact could be much greater. Ocean carriers increasingly resembling railroads The late E. Hunter Harrison, CEO of Class I railroads Canadian National, Canadian Pacific and CSX, was famously beloved by investors and loathed by customers. Running his railroads to maximize profit meant customers, specifically those captive to railroads, were inconvenienced and deprioritized in ways large and small. Precision schedule railroading, (PSR) a concept he created that has been widely implemented, meant trains left on time with no exceptions, even for preferred customers. Ocean carriers increasingly resemble railroads. Beneficial cargo owners (BCOs) are beholden to container shipping; only for a few and only in certain situations is air cargo a viable alternative. And with waves of consolidation over decades, top carriers control more of the market than they ever did. The top 10 now control over 84% of total tonnage, according to Alphaliner. Though carriers freely compete, the psychology of carriers was changed by COVID-19. This is relevant in light of AI. Consider the evolution: In an earlier day, with more carriers and an ethos of serving customers, carriers used to run their networks for schedule reliability. This was standard during many decades of the conference system, when conference lines spent lavishly on fuel to ensure on-time arrivals irrespective of whether freight rate levels would yield adequate returns. No longer. Devotion to reliability was punctured during the 2008-2009 financial crisis when carriers began slow steaming at scale to balance supply and demand, and then further eroded in the years prior to Covid as blank sailings became standard practice within alliances. COVID and the disruptions that followed sealed the deal. Carriers realized that profits result not from ships being on time with ships and cargo circulating fluidly. Rather, profits result from the system being disrupted and capacity removed due to port congestion, idled ships and elongated transits, like those around southern Africa to avoid the Red Sea. On that basis, carriers earned unimaginable profits of over $400 billion from 2020-2023, according to analyst John McCown. That was more profit than the industry earned during the entire period between the first container ship sailing in 1956 and 2020, according to Sea-Intelligence. AI to the rescue? If JP Morgan is right in recently forecasting “deep losses” due to “material oversupply,” carriers are staring at a bleak outlook over the next few years. Could this be where AI comes to the rescue? Its timing couldn’t be better. The following scenario is far from implausible. A carrier’s complete data repository is fed into a trained AI model on a continuous basis. All vessels, all locations, all speeds, all fuel consumption, all containers and their locations, all customers, all contracts, all spot rates, all port times and all financials. A simple request is made: Run the network to maximize profit. Do as Hunter Harrison would have done. Determine at what speeds ships operate, the ports they do and don’t call, and which trade lanes they slot in and out of. Also determine which customers get containers and when and which ones have to wait, and what rates get extended to whom, when and on what terms. The system learns and improves. Google says its Shipping Network Design API announced last year is able to double the profit of a container line, deliver 13% more containers and do so with 15% fewer vessels. In April, CMA CGM announced a Euro 100 million investment in a partnership with Mistral AI that CMA CGM Chairman Rodolphe Saade called a “transformation of CMA CGM through artificial intelligence.” In a famously relationship-based industry, subjecting key decisions to AI direction is obviously radical. Carriers may hesitate to subjugate customer relationships to AI decision making if competitors are keeping the phone lines and bar tabs open. They may defer to their conservative instincts, just as they do regarding other proposed radical solutions to under-performance, such as trading freight rate futures. But times have changed. Carriers are no longer unclear that they are profit-making entities entitled to act in their own interests. Transportation profits come from control over the network, limited competition, capacity management and captive customers. That is what is developing in containers, and AI, at the end of the day, will only accelerate it. Contact Peter Tirschwell at peter.tirschwell@spglobal.com.

Supply chain

Disruptive force of AI will help usher in new era of container shipping

<div class="phx-topic abstract-wrapper">Consequences for nations supporting the emissions-cutting measures were spelled out by the US State Department this week, which threatened to impose tariffs, port duties and even visa refusals.</div>

Consequences for nations supporting the emissions-cutting measures were spelled out by the US State Department this week, which threatened to impose tariffs, port duties and even visa refusals.

<div class="phx-topic">Liberia, Panama and other small nations that control much of the world’s shipping tonnage will likely be in the crosshairs of the Trump administration as the US steps up efforts to derail the International Maritime Organization’s (IMO) “net-zero” emissions framework that is up for adoption next month. That is according to a global shipping source who did not want to be identified, citing serious consequences facing those speaking out against the US position. Those consequences were spelled out by the US State Department this week, which threatened to impose tariffs, port duties and even visa refusals on IMO member states supporting the net-zero framework, <a href="https://www.reuters.com/legal/litigation/us-tells-countries-reject-un-ship-fuel-emissions-deal-or-face-tariffs-sources-2025-09-03/">according to a report from Reuters</a>. The flag states of Liberia, Panama and the Marshall Islands are home to almost half of the world’s gross tonnage, and that could play a crucial role during the meeting in October of the IMO’s Marine Environment Protection Committee (MEPC), the shipping source said. The proposed net-zero framework, agreed in principle by a majority of IMO member states at MEPC’s meeting in April, will be up for formal adoption at the IMO session scheduled Oct. 14-17 in London. While much has been made about the need for a two-thirds majority vote in favor of the framework for it to pass, the source said the outcome will be decided by member states controlling the bulk of global tonnage. ”It is a yes or no vote and two-thirds must vote yes for adoption, and if the states voting yes constitute 50% or more of the world’s tonnage, then it’s a done deal,” the source told the Journal of Commerce. “Marshall Islands, Liberia and Panama constitute more than 45% of the global tonnage and with China it is more than 50%, but it’s probably more possible that smaller states will bow to the US pressure than a big state,” the source added. “It’s not about the big economies. It’s about some very small states that have most of the fleet, and this new US bully policy is certainly a huge vulnerability within the whole system at the IMO.” <h3>US escalates opposition </h3>The greenhouse gas emissions-cutting proposal is regarded as crucial in enabling global shipping to reach climate neutrality around 2050 by introducing fuel standards and levies on ships that fail to meet strict targets. But the IMO measure has faced <a href="https://www.joc.com/article/us-rejection-of-imo-net-zero-framework-wont-change-outcome-bimco-6062545">escalating pushback from Washington</a>, with the US delegation <a href="https://www.joc.com/article/us-pulls-out-of-imo-climate-talks-threatens-retaliation-for-emissions-fees-5980359">walking out of the MEPC meeting in April</a> in protest over the decarbonization talks. And in August, US Secretary of State Marco Rubio, Commerce Secretary Howard Lutnick, Energy Secretary Chris Wright and Transportation Secretary Sean Duffy said in a joint statement that President Donald Trump would not accept “any international environmental agreement that unduly or unfairly burdens the United States or harms the interests of the American people.” Asked to respond to the latest US attempt to stop the net-zero proposal, the IMO said the October meeting was the appropriate platform to address any concerns from member states. “The IMO Net-Zero Framework was approved in April 2025 and represents a collective commitment by member states to deliver on shared goals outlined in the revised IMO strategy on the reduction of GHG emissions that was adopted in 2023,” a spokesperson told the Journal of Commerce. Contact Greg Knowler at <a href="mailto:greg.knowler@spglobal.com">greg.knowler@spglobal.com</a>. </div>

Liberia, Panama and other small nations that control much of the world’s shipping tonnage will likely be in the crosshairs of the Trump administration as the US steps up efforts to derail the International Maritime Organization’s (IMO) “net-zero” emissions framework that is up for adoption next month. That is according to a global shipping source who did not want to be identified, citing serious consequences facing those speaking out against the US position. Those consequences were spelled out by the US State Department this week, which threatened to impose tariffs, port duties and even visa refusals on IMO member states supporting the net-zero framework, according to a report from Reuters . The flag states of Liberia, Panama and the Marshall Islands are home to almost half of the world’s gross tonnage, and that could play a crucial role during the meeting in October of the IMO’s Marine Environment Protection Committee (MEPC), the shipping source said. The proposed net-zero framework, agreed in principle by a majority of IMO member states at MEPC’s meeting in April, will be up for formal adoption at the IMO session scheduled Oct. 14-17 in London. While much has been made about the need for a two-thirds majority vote in favor of the framework for it to pass, the source said the outcome will be decided by member states controlling the bulk of global tonnage. ”It is a yes or no vote and two-thirds must vote yes for adoption, and if the states voting yes constitute 50% or more of the world’s tonnage, then it’s a done deal,” the source told the Journal of Commerce. “Marshall Islands, Liberia and Panama constitute more than 45% of the global tonnage and with China it is more than 50%, but it’s probably more possible that smaller states will bow to the US pressure than a big state,” the source added. “It’s not about the big economies. It’s about some very small states that have most of the fleet, and this new US bully policy is certainly a huge vulnerability within the whole system at the IMO.” US escalates opposition The greenhouse gas emissions-cutting proposal is regarded as crucial in enabling global shipping to reach climate neutrality around 2050 by introducing fuel standards and levies on ships that fail to meet strict targets. But the IMO measure has faced escalating pushback from Washington , with the US delegation walking out of the MEPC meeting in April in protest over the decarbonization talks. And in August, US Secretary of State Marco Rubio, Commerce Secretary Howard Lutnick, Energy Secretary Chris Wright and Transportation Secretary Sean Duffy said in a joint statement that President Donald Trump would not accept “any international environmental agreement that unduly or unfairly burdens the United States or harms the interests of the American people.” Asked to respond to the latest US attempt to stop the net-zero proposal, the IMO said the October meeting was the appropriate platform to address any concerns from member states. “The IMO Net-Zero Framework was approved in April 2025 and represents a collective commitment by member states to deliver on shared goals outlined in the revised IMO strategy on the reduction of GHG emissions that was adopted in 2023,” a spokesperson told the Journal of Commerce. Contact Greg Knowler at greg.knowler@spglobal.com .

Transport, Trade and Regulation News

US steps up attempts to derail IMO’s ‘net-zero’ ambitions

<div class="phx-topic abstract-wrapper">New data obtained by the Journal of Commerce from local freight forwarders indicates a downward shift of between $400 and $600 per standard dry container in FAK rate levels over the last two weeks. </div>

New data obtained by the Journal of Commerce from local freight forwarders indicates a downward shift of between $400 and $600 per standard dry container in FAK rate levels over the last two weeks.

<div class="phx-topic">Container lines on the India-Europe trade lane have had to push their rate asks substantially lower to keep vessel loads as close as possible to their declared space allocations amid sluggish demand. New data obtained by the Journal of Commerce from local freight forwarders indicates a downward shift of between $400 and $600 per standard dry container in freight-all-kinds (FAK) rate levels over the last two weeks. FAK quotes from active India-Europe liners are now in the range of $1,600 to $1,800 per TEU/FEU for bookings from Nhava Sheva/Mundra to Felixstowe/London Gateway/Southampton or Rotterdam. But sources said TEU rates are slightly higher in cases where overweight surcharges — usually between $200 and $400 per box — are applied. Forwarders also said carriers are adjusting spot rates on a sailing-by-sailing or weekly basis to maximize cargo bookings. “Some recent vessels to Europe have sailed light due to falling booking levels,” said an executive at a Mumbai-based forwarder who didn’t want to be identified. The executive explained that the rate upswing seen on the trade lane through July was primarily linked to crimped capacity from multiple vessel blankings and that a correction was in the offing with schedules returning to the normal flow. “The market is settling into its reality,” the source said. Moreover, forwarders anticipate a further decline in India-Europe rates through September, potentially falling to $1,100 to $1,200 per standard box. There are other murky signals in the market. An unexpected capacity top-up seems to be taking hold for India-Europe cargo as major lines try to troubleshoot the tariff-linked impact on India-US volumes. For example, French liner CMA CGM, in search of incremental cargo avenues, in late September will add an extra stop at Tangier in Morocco to its India-US East Coast “Indamex” loop to connect Indian shipments destined for the Europe/Mediterranean region via transshipment. This is expected to inject 1,000 TEUs of additional weekly space into the already oversupplied India-Europe route. Sources believe other India-US operators could make similar “outside-the-box” moves. Contact Bency Mathew at <a href="mailto:bencyvmathew@gmail.com">bencyvmathew@gmail.com.</a></div>

Container lines on the India-Europe trade lane have had to push their rate asks substantially lower to keep vessel loads as close as possible to their declared space allocations amid sluggish demand. New data obtained by the Journal of Commerce from local freight forwarders indicates a downward shift of between $400 and $600 per standard dry container in freight-all-kinds (FAK) rate levels over the last two weeks. FAK quotes from active India-Europe liners are now in the range of $1,600 to $1,800 per TEU/FEU for bookings from Nhava Sheva/Mundra to Felixstowe/London Gateway/Southampton or Rotterdam. But sources said TEU rates are slightly higher in cases where overweight surcharges — usually between $200 and $400 per box — are applied. Forwarders also said carriers are adjusting spot rates on a sailing-by-sailing or weekly basis to maximize cargo bookings. “Some recent vessels to Europe have sailed light due to falling booking levels,” said an executive at a Mumbai-based forwarder who didn’t want to be identified. The executive explained that the rate upswing seen on the trade lane through July was primarily linked to crimped capacity from multiple vessel blankings and that a correction was in the offing with schedules returning to the normal flow. “The market is settling into its reality,” the source said. Moreover, forwarders anticipate a further decline in India-Europe rates through September, potentially falling to $1,100 to $1,200 per standard box. There are other murky signals in the market. An unexpected capacity top-up seems to be taking hold for India-Europe cargo as major lines try to troubleshoot the tariff-linked impact on India-US volumes. For example, French liner CMA CGM, in search of incremental cargo avenues, in late September will add an extra stop at Tangier in Morocco to its India-US East Coast “Indamex” loop to connect Indian shipments destined for the Europe/Mediterranean region via transshipment. This is expected to inject 1,000 TEUs of additional weekly space into the already oversupplied India-Europe route. Sources believe other India-US operators could make similar “outside-the-box” moves. Contact Bency Mathew at bencyvmathew@gmail.com.

Forwarding

India-Europe liners lower rates as capacity normalizes amid little peak demand signs

<div class="phx-topic abstract-wrapper">The two nominees, Laura DiBella and Robert Harvey, would replace former commission members Louis Sola and Carl Bentzel.</div>

The two nominees, Laura DiBella and Robert Harvey, would replace former commission members Louis Sola and Carl Bentzel.

<div class="phx-topic">President Donald Trump has nominated two long-time Florida political operators to be the newest members of the Federal Maritime Commission (FMC). The White House on Wednesday sent the nominations of Laura DiBella and Robert Harvey to the Senate. DiBella, whose term would expire in 2028, would replace Louis Sola, <a href="https://www.joc.com/article/fmcs-sola-to-leave-agency-months-after-being-elevated-to-chairmans-slot-6031245">who left the agency in June</a> after serving as a commissioner since 2018 and chairman for <a href="https://www.joc.com/article/trump-appoints-louis-sola-to-chairmans-slot-at-fmc-5926442">about five months after being nominated by Trump</a>. Harvey, whose term would expire in 2029, would replace Carl Bentzel, another Trump appointee to the FMC from 2019 who <a href="https://www.joc.com/article/bentzel-leaving-fmc-for-executive-role-with-maritime-trade-groups-5792476">left the agency last year</a>. FMC commissioners have five-year terms but can serve for longer periods until the president makes new nominations.DiBella is a government affairs advisor for Florida-based law firm Adams and Reese. Prior to that, she was president of business development for the state’s Department of Commerce and led other economic development programs. Her maritime experience includes nearly three years as executive director of the Florida Harbor Pilots Association and the director of the Port of Fernandina. She is also a licensed realtor. Harvey has led the Florida Opportunity Fund, a state-sponsored investment fund, for the last two years. It is not known who will serve as the next chairman of the FMC.Contact Michael Angell at <a href="mailto: michael.angell@spglobal.com">michael.angell@spglobal.com</a>. </div>

President Donald Trump has nominated two long-time Florida political operators to be the newest members of the Federal Maritime Commission (FMC). The White House on Wednesday sent the nominations of Laura DiBella and Robert Harvey to the Senate. DiBella, whose term would expire in 2028, would replace Louis Sola, who left the agency in June after serving as a commissioner since 2018 and chairman for about five months after being nominated by Trump . Harvey, whose term would expire in 2029, would replace Carl Bentzel, another Trump appointee to the FMC from 2019 who left the agency last year . FMC commissioners have five-year terms but can serve for longer periods until the president makes new nominations. DiBella is a government affairs advisor for Florida-based law firm Adams and Reese. Prior to that, she was president of business development for the state’s Department of Commerce and led other economic development programs. Her maritime experience includes nearly three years as executive director of the Florida Harbor Pilots Association and the director of the Port of Fernandina. She is also a licensed realtor. Harvey has led the Florida Opportunity Fund, a state-sponsored investment fund, for the last two years. It is not known who will serve as the next chairman of the FMC. Contact Michael Angell at michael.angell@spglobal.com .

Trump taps two Floridians to serve on the FMC

<div class="phx-topic abstract-wrapper">Excess capacity is keeping spot and contract truckload pricing in check, although imports into the West Coast generated demand in that region last month. </div>

Excess capacity is keeping spot and contract truckload pricing in check, although imports into the West Coast generated demand in that region last month.

<div class="phx-topic">The US truckload market is stuck in a three-year rut, with no sign of a catalyst that will substantially increase demand, according to interviews with industry sources and data analyzed by the Journal of Commerce. Throughout the third quarter of each year, short-term events such as produce season, the Fourth of July holiday and a nationwide brake inspection week in late August temporarily tightened truck capacity and pushed up spot rates. But the market snapped back to its baseline each time. “There was no momentum beyond those short periods,” said Corey Klujsza, vice president of pricing and procurement strategy at logistics provider RXO, which produces the quarterly RXO Curve report on truckload market pricing. There was more rate volatility within those “short periods” this year than in 2024 or 2023, which could indicate excess truckload capacity is diminishing, Klujsza said. “We saw rates [this year] outperform seasonality compared to the last two years,” he said. But short-lived gains did not break the spot rate ceiling set by the three-year freight downturn. The Journal of Commerce average US shipper-paid truckload spot rate in August was flat with July, at $2.23 per mile, according to data released this week. That all-inclusive rate, based on data from more than 4,000 lanes longer than 250 miles, was up 3 cents per mile from a year ago but down 3 cents from August 2023. The West Coast last month provided an exception to the spot market malaise. Spot rates out of California rose 12 cents per mile month over month in August, to an average of $2.65 per mile, as cargo landing in West Coast ports in July worked its way into domestic networks, according to the Journal of Commerce analysis. The average outbound truckload spot rate from Ontario, California, rose 12.5% from April through August, hitting $2.71 per mile last month. ”Import activity has been a positive overall, but intermodal has been the winner,” Klujsza told the Journal of Commerce. “Intermodal is showing sequential and year-over-year growth. [Freight] isn’t falling into the truckload market.” Railroads kept ocean containers <a href="https://www.joc.com/article/bnsf-up-kept-rail-terminals-fluid-in-august-amid-ipi-surge-6075488">flowing smoothly in August</a> as July’s import surge moved inland, according to data and market participants. Data from the Journal of Commerce and other sources was supported by shippers who noted tighter trucking capacity in Southern California and the Pacific Northwest but abundant truck capacity nationwide. <h3>Narrow pricing band </h3>The Journal of Commerce pricing data aligns with data from other sources, including the US long-distance truckload producer price index (PPI). That PPI, an all-inclusive measure of prices, was 172.7 in July, up from 170.8 in June but down from 175.8 a year ago. The PPI, which represents contract and spot rates, has moved in a narrow band between 170 and 180 since May 2023 and is now at the lower end of that band. <div class="wrapper-narrow"><dynamic-object type="jocchartid" resource-id="75c6a726-cc97-4bf7-90a3-a352fd2ace2d"></dynamic-object></div>“It feels like the market is stuck,” said Dean Croke, principal analyst at load board operator DAT Freight &amp; Analytics. “I don’t see anything that would say the market has turned.” DAT’s dry van linehaul rates rose 2 cents per mile week over week, to an average of $1.67 per mile, excluding fuel surcharges, in the week ended Aug. 28. That is 4 cents higher than a year ago and 7 cents above the average rate for the same week in 2023. “We’ve had three years of this tough freight environment,” said Croke. The truckload market has not been able to find a new balance, he said, because “demand keeps moving. It’s still a guessing game.” Although spot rates are slowly rising, new replacement contract rates in routing guides are flat, Croke said. “We’re still seeing shippers having pricing power, which tells us there’s plenty of truck capacity,” he said. Contact William B. Cassidy at <a href="mailto://bill.cassidy@spglobal.com">bill.cassidy@spglobal.com</a>.</div>

The US truckload market is stuck in a three-year rut, with no sign of a catalyst that will substantially increase demand, according to interviews with industry sources and data analyzed by the Journal of Commerce. Throughout the third quarter of each year, short-term events such as produce season, the Fourth of July holiday and a nationwide brake inspection week in late August temporarily tightened truck capacity and pushed up spot rates. But the market snapped back to its baseline each time. “There was no momentum beyond those short periods,” said Corey Klujsza, vice president of pricing and procurement strategy at logistics provider RXO, which produces the quarterly RXO Curve report on truckload market pricing. There was more rate volatility within those “short periods” this year than in 2024 or 2023, which could indicate excess truckload capacity is diminishing, Klujsza said. “We saw rates [this year] outperform seasonality compared to the last two years,” he said. But short-lived gains did not break the spot rate ceiling set by the three-year freight downturn. The Journal of Commerce average US shipper-paid truckload spot rate in August was flat with July, at $2.23 per mile, according to data released this week. That all-inclusive rate, based on data from more than 4,000 lanes longer than 250 miles, was up 3 cents per mile from a year ago but down 3 cents from August 2023. The West Coast last month provided an exception to the spot market malaise. Spot rates out of California rose 12 cents per mile month over month in August, to an average of $2.65 per mile, as cargo landing in West Coast ports in July worked its way into domestic networks, according to the Journal of Commerce analysis. The average outbound truckload spot rate from Ontario, California, rose 12.5% from April through August, hitting $2.71 per mile last month. ”Import activity has been a positive overall, but intermodal has been the winner,” Klujsza told the Journal of Commerce. “Intermodal is showing sequential and year-over-year growth. [Freight] isn’t falling into the truckload market.” Railroads kept ocean containers flowing smoothly in August as July’s import surge moved inland, according to data and market participants. Data from the Journal of Commerce and other sources was supported by shippers who noted tighter trucking capacity in Southern California and the Pacific Northwest but abundant truck capacity nationwide. Narrow pricing band The Journal of Commerce pricing data aligns with data from other sources, including the US long-distance truckload producer price index (PPI). That PPI, an all-inclusive measure of prices, was 172.7 in July, up from 170.8 in June but down from 175.8 a year ago. The PPI, which represents contract and spot rates, has moved in a narrow band between 170 and 180 since May 2023 and is now at the lower end of that band. “It feels like the market is stuck,” said Dean Croke, principal analyst at load board operator DAT Freight & Analytics. “I don’t see anything that would say the market has turned.” DAT’s dry van linehaul rates rose 2 cents per mile week over week, to an average of $1.67 per mile, excluding fuel surcharges, in the week ended Aug. 28. That is 4 cents higher than a year ago and 7 cents above the average rate for the same week in 2023. “We’ve had three years of this tough freight environment,” said Croke. The truckload market has not been able to find a new balance, he said, because “demand keeps moving. It’s still a guessing game.” Although spot rates are slowly rising, new replacement contract rates in routing guides are flat, Croke said. “We’re still seeing shippers having pricing power, which tells us there’s plenty of truck capacity,” he said. Contact William B. Cassidy at bill.cassidy@spglobal.com .

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At SSA Marine Mexico, we firmly believe that business development must go hand in hand with social and environmental well-being. Our vision is not solely focused on operating efficiently, but also on creating a meaningful and positive impact in the communities where we are present. Since 1995, we have reaffirmed this commitment through tangible actions that reflect our core values of responsibility, solidarity, and sustainability. <span class="joc_admin__inline-image joc_admin__inline-image-aspect-ratio-3_2 joc_admin__inline-image-position-left joc_admin__inline-image-size-medium" data-figure-size="medium" data-figure-position="left" data-figure-aspect-ratio="3:2"><img src="/content-assets/1752584535914_Photo%201.jpg" alt="" class="joc_admin__inline-image-inherit"> A Year of Major Achievements Over the past year, we allocated more than $107,000 USD to the implementation of 60 social and environmental projects, positively impacting over 7,800 people across various regions of Mexico. Each initiative was designed with a holistic approach, addressing key areas that contribute to long-term community development. Education: Laying the Foundation for the Future Education is one of the most powerful tools to promote social mobility and equitable development. At SSA Marine Mexico, we support academic initiatives that inspire and empower the next generation of leaders. One of our most impactful partnerships was with the University of Colima, where we sponsored the “Reto Camp” program. This initiative encourages university students to develop innovative solutions in the fields of sustainability, logistics, and port operations, offering them mentorship, tools, and real-world challenges to solve. In addition, we donated microscopes, school supplies, and educational materials to institutions in underserved communities, helping to improve the learning environment and provide students with the resources they need to succeed. Health and Sports: Promoting Wellness We believe that healthy communities are strong communities. We have supported several local sporting events and provided direct assistance to talented athletes, enabling them to pursue their passions and represent their regions with pride. Beyond sports, we also strengthened our collaboration with critical emergency response organizations such as the Mexican Red Cross and Civil Protection. Our contributions helped enhance their readiness and capabilities in times of crisis, ensuring better outcomes for those affected by emergencies. Supporting Vulnerable Groups: Reaching Those Who Need It Most A core part of our social responsibility efforts is directed toward supporting vulnerable populations. We have contributed to a range of initiatives focused on children, migrants, and at-risk families. These efforts included donations to orphanages and shelters, as well as support for the National Institute of Migration and grassroots organizations dedicated to protecting and empowering people facing adversity. By standing with those in need, we reinforce our commitment to inclusion and social justice, values that are central to our identity as a responsible company. <span class="joc_admin__inline-image joc_admin__inline-image-aspect-ratio-3_2 joc_admin__inline-image-position-left joc_admin__inline-image-size-medium" data-figure-size="medium" data-figure-position="left" data-figure-aspect-ratio="3:2"><img src="/content-assets/1752584944645_Photo%202.png" alt="" class="joc_admin__inline-image-inherit">Culture: Strengthening Community Identity Cultural identity is a key element in building resilient and united communities. At SSA Marine Mexico, we actively participate in the organization and sponsorship of cultural events that celebrate local traditions and foster civic pride. Working alongside port authorities and municipal governments, we helped bring music, art, and heritage to the forefront, creating spaces for community engagement and intercultural dialogue. Environment: Investing in the Planet Our commitment to sustainability goes beyond operations—it’s a philosophy that drives every decision we make. We have partnered with environmental institutions to carry out reforestation campaigns, beach cleanups, and conservation efforts. In collaboration with the Institute for the Environment, we supported initiatives aimed at decarbonization, biodiversity protection, and environmental education. By involving our employees and local volunteers in these actions, we also foster a culture of environmental stewardship throughout our organization and our surrounding communities. Innovation for a Sustainable Future Sustainability is not just about doing good—it’s also about doing things better. In 2024, we invested $22 million USD in the acquisition of 11 state-of-the-art E-RTG cranes. These electric rubber-tired gantry cranes represent a significant technological advancement in port equipment. Seven of them are already operating on clean electric energy, resulting in a reduction of nearly 4,000 tons of CO₂ emissions and improving operational efficiency by 7%. The remaining four cranes are fully compatible with future electrification, underscoring our long-term strategy to modernize our operations in an environmentally responsible way. This investment is part of a broader innovation roadmap that includes digitalization, automation, and cleaner energy sources—all designed to ensure that our ports continue to grow without compromising the health of our planet. Building a Better Tomorrow, Together At SSA Marine Mexico, we understand that sustainability is a shared and ongoing responsibility. True impact requires collaboration across sectors, long-term vision, and unwavering commitment. That is why we continue to work hand-in-hand with local authorities, non-profit organizations, universities, and our own employees to create solutions that are both scalable and sustainable. Our journey is far from over. In the years ahead, we will continue to deepen our community engagement, explore cleaner technologies, and strengthen the social fabric of the regions where we operate. Each initiative, no matter the size, is a step toward building a future where business success goes hand-in-hand with human and environmental prosperity. We are proud of what we have achieved in 2024, but we are even more excited about what lies ahead. SSA Marine Mexico — Moving the World, Caring for People and Planet. LINK: <a href="https://www.ssamarine.mx/" rel="noreferrer" class="joc_admin__link">https://www.ssamarine.mx/</a>

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The world of LTL is slow to embrace change. Business anachronisms permeate current supply chain processes. These vestiges of the way things used to work define the LTL freight transportation procurement process of many modern shippers.David Knuth, logistics specialist at IEWC, a global supplier of cable and wire based in Wisconsin, is happy to have modernized the RFP process, automating the entire LTL bidding procedure with Bid$ense, SMC³’s automated truckload and LTL freight transportation sourcing solution. But when prompted, he can still recall what once was.In his previous job, a large part of his duties were consumed by creating an intermodal bid package for carriers. In a spreadsheet, Knuth detailed the company’s volumes lane by lane, taking care to delete any errant keystrokes or misleading data. He would then email out the information to each carrier, taking time to respond to detailed technical questions about the spreadsheet data. Finally, he had to compile all the results, create an algorithm that would compare the carriers on each lane, and award the business.“It was a huge undertaking. It took about four months to do,” Knuth said of the old process. “It was almost a full-time job for that part of the year, every year.”In his new job at IEWC, he sat down with Bid$ense on day one and was amazed at the capabilities. Knuth had never before used a bid tool. SMC³’s latest versions of Bid$ense automate the process even further, taking truckload and LTL RFPs entirely online. The tool draws on RFP best-practices protocols to streamline the bidding communication process, enabling bidding carriers to respond accurately and promptly to shipper requests. The solution also does all the distribution work automatically, electronically submitting shipper bid data to carriers based on their actual service capabilities and performance records. Carriers are alerted with timely prompts for RFP deliverables, so shippers aren’t waiting by the phone for responses.Another benefit of automating the process is the data-cleansing assistance. When Knuth sent spreadsheets to carriers, data errors might cloud the bidding process; he might have to resend data or simply accept a price that did not truly reflect the costs of doing business. Data cleansing is incredibly beneficial, he said.The spreadsheet technique also made bidding analysis an onerous task. Since Bid$ense automates and streamlines the entire RFP process, intensive examination is now simple. SMC³ knows that each bid has more than one best outcome. With uniform responses from each carrier, shippers can quickly rank results and create an unlimited quantity of what-if scenarios to make the optimal procurement decision.Jesse Burnett of Central Garden &amp; Pet experiences many of the same benefits. Founded in 1980, Central Garden &amp; Pet has spent the last three decades growing from a small garden supply company to a provider of a range of products from dog chews and bird seed to soil supplements and natural insecticides. For much of its life, the company shipped these disparate goods via LTL and truckload carriers to retailers throughout the country, relying on each business unit to negotiate directly with their freight transportation providers. This arrangement worked fairly well for a small company, but as Central Garden &amp; Pet expanded, leadership decided to consolidate decision making.Burnett helped centralize the transportation decision making in 2015 with SMC³’s Bid$ense. Before Bid$ense, every business unit operated independently as far as negotiating with carriers.“There were a lot of different things just floating around,” he said. “We didn’t have master agreements in place; no national pricing at all. The pricing from carriers was just all over the place, depending on where you were.”The transformations he saw with Bid$ense were immediate. Burnett has been using the tool about every other year since its implementation at the company. Central Garden and Pet’s $19.6 million 2019 LTL bid saved the company just more than 9 percent when compared to its historical average. For Burnett, though, bid automation extends far beyond savings.“We knew that we weren’t getting the best pricing offer from our carriers just because nothing was centralized,” he continued. “We knew that if we combined everything from all these business units and paired it with one corporate offering, then it would drive some cost benefit with it.”When the company initially decided to centralize bid procurement, executives researched a number of different methodologies and technologies. In the end, though, Burnett found that Bid$ense was both widespread and well known, and that his carrier partners already knew how to use the application. Burnett also highlighted the data-cleansing process as a major benefit, saying the rigorous process ensures that carriers always return the best price.“It definitely has helped drive savings,” he said. “Any time you go out there and you drive that competitiveness with the carriers and they know they’re in a bid environment, it seems to sharpen their pencils.”Transportation procurement is an integral part of the modern supply chain. With Bid$ense, shippers can develop a strategic implementation plan that saves them time and money, but also helps them create strong relationships with their carrier partners. These carriers appreciate the solution’s data-cleansing process; when carriers receive a complete shipment history and future volume forecast, they don’t have to guess on pricing. Carriers that receive more data from shippers get a complete picture of that shipper’s freight, allowing them to accurately plan instead of simply preparing for the worst-case scenario. Clean data presented through an automated system can lead to both bigger shipment savings and a lasting partnership between carrier and customer.Whether customers are looking to streamline over-the-road transportation bidding by automating the RFP process or create an entirely new, centralized sourcing process, Bid$ense has the analytical horsepower to get the job done.SMC³ 2020 Customer Case Study

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If there’s one immutable truth in the world of logistics, it’s this: LTL is an inherently complex form of transportation. Tariffs, rates, DIM weights, transit times — it’s enough to confuse even seasoned logistics professionals. The solution to this knowledge gap has historically been on-the-job training or university supply chain education, but for a variety of reasons there is now a pressing need for third-party, remote LTL training that prepares logistics workers for transportation success. Global Scope Can Overlook Local Intricacies In the past, professionals looking to move into a supply chain career learned about the basics of supply chain from universities. However, many of these college supply chain programs are now global in scope, focusing on worldwide supply chain management instead of the intricacies of specialized domestic transportation. And even these programs, which used to be widespread, are becoming less common. LTL is not an industry of broad-brush strokes; supply chain professionals really need a pointillistic understanding of the logistics of LTL in order to excel in the industry. Accelerating Need for Dedicated LTL Education This lack of specified training put the onus on employers to prepare new hires with the LTL knowledge needed to do their jobs. Dedicated LTL study is a necessity, not a luxury. At the same time, changes in LTL and the broader supply chain world are accelerating. The reliance on e-commerce has ballooned since the start of the pandemic, and last-mile LTL shipments and related e-commerce strains on the supply chain won’t diminish once social distancing abates. That genie isn’t going back into the bottle. So supply chain employers need logistics workers that are fully versed in all aspects of the industry, ready to solve unique shipping and delivery problems based on their extensive supply chain knowledge But why care about LTL? It’s been reported that some shippers in today’s world are no longer concerned with what mode is used to ship their goods. A Multimodal Approach Ensures On-Time Delivery This mode agnosticism means supply chain stakeholders have to be well versed in all modes of transportation. As unforeseen weather events and other disruptions, such as protests, become more common, savvy logistics employees will need to be armed with familiarity of all modes, not just the most popular, to ensure that freight is delivered on time, without damage, and in the most financially expedient way possible. Offerings like SMC³’s LTL online education courses cover a wide range of topics from LTL basics and operations to more advanced concepts like pricing analytics and transportation law. The company also has plans to continually refresh content, adding new expert presenters and taking the feedback of students to make the courses even better as time goes on. Learn more about&nbsp;<a href="https://logisticstrainingcenter.com/smc3-courses/" rel="noreferrer" class="joc_admin__link">SMC³’s LTL Online Education program</a>&nbsp;and view the 2021 hybrid schedule, featuring live industry experts,&nbsp;<a href="https://www.smc3.com/onlinelearning2021/" rel="noreferrer" class="joc_admin__link">here.</a>

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